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Indian iron ore mining mess - CEC report will pave way for CBI probe
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Monday, 21 Nov 2011
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Legal experts employed by the mining industry believe that it's only a matter of time before former chief minister Mr BS Yeddyurappa is investigated by the CBI. They are convinced of this going by the Supreme Court's response on Friday to the NGO, Samaj Parivarthan Samudaya’s plea for a CBI inquiry into the affairs of Adani Enterprises and Jindal Steel.

While not rejecting the SPS' plea for a CBI investigation of the companies which have been strongly indicted in the report of former Lokayukta Justice Santosh Hegde on illegal mining, the Supreme Court said it would base its decision on the Central Empowered Committee's recommendations.

Reading between the lines of the court's response, legal experts said that a CBI inquiry into these companies is now almost certain. An advocate who deals with mining cases said that “The CEC has always gone by the Lokayukta's report and so its inquiry is certain to pave way for a CBI investigation as there is no precedent of the Supreme Court rejecting its recommendations on matters related to illegal mining in the state.” If he is right it could mean more trouble for Mr Yeddyurappa as his family run, Prerana Educational and Social Trust allegedly received donations to the tune of INR 30 crore from the Jindal group of companies.

Justifying its demand for a CBI inquiry, SPS told the Supreme Court that Jindal Steel (JSW) and its front company South West Mining Company (SWMC) are alleged to have received illegally mined ore supplied by the Associated Mining Company and have been indicted by the Lokayukta for making a donation of Rs.30 crore to a family trust run by Mr Yeddyurappa's relatives. It also pointed out that the JSW group has been accused of buying land at a ridiculously high price from Mr Yeddyurappa's family in return for help with obtaining certain licences from the Union government.

On Adani Enterprises, the SPS referred to the Lokayukta report, which claimed it had paid bribes to be able to carry on with illegal exports.

(Sourced from www.deccanchronicle.com)

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